At the beginning for the year 2020, Shanghai Healthy Food Production Company budgeted its cost at 4
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Question:
At the beginning for the year 2020, Shanghai Healthy Food Production Company budgeted its cost at 4 different capacity levels as follows:
Manufacturing Overheads | Capacity Level/Usage (in mh) | |||
10,000 | 12,000 | 15,000 | 20,000 | |
Indirect Materials | 30,000 | 36,000 | 45,000 | 60,000 |
Depreciation | 15,000 | 15,000 | 15,000 | 15,000 |
Supervision | 23,000 | 27,000 | 33,000 | 43,000 |
Energy | 48,000 | 56,000 | 68,000 | 88,000 |
TOTAL | 116,000 | 134,000 | 161,000 | 206,000 |
A) What is the flexible budget formula for the year 2020?
B) What is the Predetermined MOH Rate (Applied MOH Rate) if the budgeted capacity is set at 18,000 mh?
Expert Answer:
Answer to Part A The flexible budget formula for 2020 can be derived by analyzing the cost nature Va... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
